Bank Ratings: Finding A Safe Place For Your Nestegg

January 29, 2011

Nearly all of us have to choose a financial facility that we feel we can trust to safe keep our assets. At one time, people would simply hide their money under a mattress, but in these modern days, that is not feasible for many reasons. Checking bank ratings is a great way to choose who you are going to do business with. Some people simply choose the bank that is closest to their home or business without doing any research, but this could be a huge mistake.

Banks are not all the same. In fact, most banks are probably quite different. Nearly all feature different rates and financial goods and services. And the level of customer satisfaction will vary at each as well. And some offer more security than others. You should consider the services that are important to you and make sure that the institution you are considering does offer them in high quality form.

However, the most important form of security that any bank can offer is the assurance that they are backed by the FDIC. In these times of economic trouble when more than a few financial institutions are forced to close their doors, usually because of bankruptcy or failure, it is of vital importance to make sure that your money is backed by this guarantee. If you are with a bank that does not offer this protection, you should switch immediately.

This FDIC insurance gives you assurance that you can get your money back even if the bank should fail. It does have limits. Your money will be backed up to $250,000. Do your research and make sure your bank is protected.

Do keep in mind that sometimes online banks will have lower interest rates and fees that may make them a good option to pursue. Many choose these banks for the high interest rates that they offer. You see, their costs are lower because they are not a real brick and mortar institution, which allows them to offer these great rates and options. More and more people are going the online route.

Many traditional banks now offer online banking, which may give you the best of both worlds. You can check your account and pay bills online from anywhere that you have Internet access. Some places offer direct deposit or wire transfer that many will appreciate and benefit from.

Though all these things are good, the most important factor is making sure that your little nest egg is indeed safe. So do your research, make sure the bank you have chosen is FDIC insured, and you can sleep peacefully at night.

Nearly all of us have to choose a financial facility that we feel we can trust to safe keep our assets. At one time, people would simply hide their money under a mattress, but in these modern days, that is not feasible for many reasons. Checking bank ratings is a great way to choose who you are going to do business with. Some people simply choose the bank that is closest to their home or business without doing any research, but this could be a huge mistake.
Banks are not all the same. In fact, most banks are probably quite different. Nearly all feature different rates and financial goods and services. And the level of customer satisfaction will vary at each as well. And some offer more security than others. You should consider the services that are important to you and make sure that the institution you are considering does offer them in high quality form.
However, the most important form of security that any bank can offer is the assurance that they are backed by the FDIC. In these times of economic trouble when more than a few financial institutions are forced to close their doors, usually because of bankruptcy or failure, it is of vital importance to make sure that your money is backed by this guarantee. If you are with a bank that does not offer this protection, you should switch immediately.
This FDIC insurance gives you assurance that you can get your money back even if the bank should fail. It does have limits. Your money will be backed up to $250,000. Do your research and make sure your bank is protected.
Do keep in mind that sometimes online banks will have lower interest rates and fees that may make them a good option to pursue. Many choose these banks for the high interest rates that they offer. You see, their costs are lower because they are not a real brick and mortar institution, which allows them to offer these great rates and options. More and more people are going the online route.
Many traditional banks now offer online banking, which may give you the best of both worlds. You can check your account and pay bills online from anywhere that you have Internet access. Some places offer direct deposit or wire transfer that many will appreciate and benefit from.
Though all these things are good, the most important factor is making sure that your little nest egg is indeed safe. So do your research, make sure the bank you have chosen is FDIC insured, and you can sleep peacefully at night.